MATH SOLVE

4 months ago

Q:
# Consider a credit card with a balance of $8500 and an APR of 15.99%. In order to pay off the balance in 3 years, what monthly payment would you need to make?

Accepted Solution

A:

Answer:The monthly payment which need to make is $ 151.305 Step-by-step explanation:Given as :The balance in credit card = $ 8500The annual rate = 15.99 %The time period = 3 yearsFrom compounded method Amount = Principal × ( [tex](1+\dfrac{\textrm rate}{100})^{\textrm Time}[/tex])Or, 8500 = p × ( [tex](1+\dfrac{\textrm 15.99}{100})^{\textrm 3}[/tex])or, 8500 = p × (1.1599)³or, 8500 = p × 1.56049∴ p = [tex]\frac{8500}{1.56049}[/tex]I.e p = 5447.007Now The months in 3 years = 3 × 12 = 36 monthsSo , The monthly payment = [tex]\frac{5447.007}{36}[/tex] = $ 151.305Hence The monthly payment which need to make is $ 151.305 Answer